China Exchanges Migrating Overseas, Bloomberg Reports

Bloomberg News reports that China’s cryptocurrency exchanges are moving operations to a number of locations, with most focusing on Japan, where applications for licensed exchanges are underway through the end of the month.

The moves follow China’s decision to crack down on their businesses and eliminate initial coin offerings. The Chinese government cited risks to investors, but most observers believe it was a tactic designed to slow capital outflow in the country.

Beyond Japan, several exchanges have migrated to Singapore, Hong Kong and even South Korea, whose own government has expressed reservations on cryptocurrency. But the diaspora is counting on customer loyalties and the ongoing demand for cryptocurrency to fuel a new round of growth.

“We’re talking to almost all of those guys. They’re all desperate now,” Bloomberg quoted Mike Kayamori, head of Tokyo-based Quoine. That company anticipates bringing a Chinese partner aboard before the end of the year, mainly to handle the demand from China-based customers.